Refund of Cess ITC on Exported Goods Allowed | HC

  • Blog|News|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 8 January, 2026

Latest from Taxmann

Refund of Accumulated ITC of Cess

Case Details: Aurobindo Pharma Ltd. vs. State of Telangana [2025] 181 taxmann.com 704 (Telangana)

Judiciary and Counsel Details

  • Aparesh Kumar Singh, CJ.
  • G.M. Mohiuddin, J.

Facts of the Case

The petitioner challenged the rejection of its refund claims for accumulated unutilized credit of compensation cess paid on inputs, specifically coal, used in the manufacture of goods for export. The Department of Revenue denied the refund on the ground that the goods manufactured were non-taxable supplies and, therefore, the refund was not admissible. The petitioner submitted that the refund of the accumulated input tax credit of compensation cess should be allowed under the applicable provisions. The matter was accordingly placed before the High Court.

High Court Held

The High Court held that the refund of accumulated unutilized credit of compensation cess on inputs used in the manufacture of goods for export is admissible. The Court observed that the goods manufactured were exempt from tax, and the refund provisions under the CGST Act apply mutatis mutandis to the Compensation Cess Act. Consequently, the impugned orders were set aside, and the matter was remanded to the original authority to take a fresh decision in accordance with the Section 54 of the CGST Act/Telangana GST Act.

List of Cases Reviewed

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Taxmann editorial team

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied